Saturday, 13 July 2013

#4 ; MEASURING THE SUCCESS OF STRATIGIC INITIATIVE

ᴥKey performance
indicator – measures that are tied to business drivers.

ᴥMetrics are detailed measures that feed KPIs.

ᴥPerformance metrics fall into the nebulous area of
business intelligence that is neither technology, nor business centered, but
requires input from both IT and business professionals.

Efficiency and Effectiveness

«Efficiency IT metric – Measures the performance of the IT
system itself including throughput, speed, and availability.

«Effectiveness
IT metric – Measures the impact IT has on business processes and
activities including customer satisfaction, conversion rates, and sell-through increases.

Benchmarking –Baselining Metrics

«Regardless
of what is measured, how it is measured, and whether it is for thesake of
efficiency or effectiveness, there must be benchmarks – baseline valuesthe system seeks to attain.

«Benchmarking – a process of continuously measuring system results,comparing those
results to optimal system performance (benchmark values),and identifying steps
and procedures to improve system performance.

The Interrelationships of Efficiency and
Effectiveness IT Metrics

•Efficiency IT metrics focus on technology and include:

– Throughput

– Transaction speed

– System availability

– Information accuracy

– Web traffic

– Response time

The Interrelationships of Efficiency and
Effectiveness IT Metrics

•Effectiveness
IT metrics focus on an organization’sgoals, strategies, and objectives and
include:

– Usability

– Customer satisfaction

– Conversion rates

– Financial

The Interrelationships of Efficiency and
Effectiveness IT Metrics

§Security is an
issue for any organization offering products or services over the Internet

§It is
inefficient for an organization to implement Internet security, since it slows
down processing

§However, to be
effective it must implement Internet security

§Secure Internet
connections must offer encryption and Secure Sockets Layers (SSL denoted by the
lock symbol in the lower right corner of a browser)